Last week, the CFPB issued new proposed policy guidance spelling out how it intends to disclose the loan-level data that financial institutions will report under the Home Mortgage Disclosure Act. The guidance would apply to HMDA data to be reported under Regulation C as of Jan. 1, 2018. The bureau intends to make this data available to the public starting in 2019. “Public disclosure of mortgage data is central to the achievement of HMDA’s goals,” the agency said. “The bureau has considered whether and how HMDA data should be modified prior to its disclosure to the public, in order to protect applicant and borrower privacy while also fulfilling HMDA’s public disclosure purposes.” First, the CFPB is proposing to exclude from ...
Amending one regulation to make it easier for lenders to comply with another, the CFPB last week issued modified Equal Credit Opportunity Act regulations it hopes will give mortgage lenders greater flexibility in collecting consumer ethnicity and race information. The bureau “is issuing a final rule that amends Regulation B [which implements the Equal Credit Opportunity Act] to permit creditors additional flexibility in complying with Regulation B in order to facilitate compliance with Regulation C [which implements the Home Mortgage Disclosure Act]...,” the rule states. The new rule also adds certain model forms and removes others from Reg B, and makes various other amendments to the regulation and its commentary to facilitate the collection and retention of information about the ...
The latest supervisory highlights report from the CFPB found that mortgage lenders, banks and nonbanks alike, put the controversial TILA/RESPA Integrated Disclosure rule – TRID – into effect without much of a problem, more or less. “Initial examination findings and observations conclude that, for the most part, supervised entities, both banks and nonbanks, were able to effectively implement and comply with the Know Before You Owe mortgage disclosure rule changes,” the report stated. However, examiners did find some violations relating to the content and timing of loan estimates and closing disclosures. The problem, however, is that the CFPB does not indicate in these reports which lenders or how many of them may have been guilty of the infractions, so there’s no way ...
The CFPB has frequently failed to provide the mortgage industry with enough guidance to ensure proper compliance with its substantial outpouring of new rules and regulations, resulting in “regulation by enforcement” far too often, according to a new white paper issued by the Mortgage Bankers Association.“Director Richard Cordray has argued that the bureau’s enforcement regime provides ‘detailed guidance for compliance officers’ and that it ‘would be compliance malpractice for the industry not to take careful bearings from [consent] orders about how to comply with the law,’” the white paper pointed out. “Unfortunately, the reality is that the bureau’s enforcement program offers only fragmentary glimpses of how the bureau interprets the laws and regulations it enforces.” Instead of giving the ...
In remarks that “sure sounded like a campaign speech,” according to one long-time industry compliance attorney, CFPB Director Richard Cordray threw the mortgage industry under the bus, accusing it of causing the financial crisis and the Great Recession that followed. Two weeks ago, Cordray delivered the keynote address at the Ohio Land Bank Conference in Cleveland, the same day the Democrat Party primary debate for the Ohio gubernatorial race was held. Some political observers were watching to see if the director would give his speech, resign and then appear in the debate. They were disappointed.But that doesn’t mean Cordray won’t resign before his term ends in July to pursue a run for the governor’s mansion. He has until 4 p.m. ...
An industry switch to digital mortgage lending may be costly upfront, but it would have saved the industry a ton of money and aggravation had it been adopted a decade ago, and can help resolve investor anxiety about legal liability and ensure greater regulatory compliance going forward, according to industry experts.In a webinar last week sponsored by Inside Mortgage Finance, Tim Anderson, director of eServices for DocMagic, pointed out that, when it comes to complying with the CFPB’s TILA/RESPA integrated disclosure rule, proof of delivery can be a big issue with investors, and e-closings/e-mortgages can be a huge help in resolving the anxiety that stems from the use of paper documents. “Three-day delivery is a big deal, [including] acknowledgement ...
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